Flutter’s clear stance is a relief to bettors and likely U.S. state regulators. DraftKings floated the surcharge plan on customers in high-tax states.
Flutter’s clear stance is a relief to bettors and likely U.S. state regulators. DraftKings floated the plan to add a surcharge on customers in New York, Pennsylvania, Illinois, and Vermont.Peter Jackson, CEO of parent company Flutter Entertainment, said during Tuesday’s second-quarter 2024 earnings call that placing an additional fee on winning bettors to offset high tax rates in certain markets is not the way to go.
“We think that moderating levels of generosity or reducing local marketing is the best customer option,” Jackson said. “We have no plans to introduce a surcharge for winners.”Illinois began a new tax structure in July, charging operators a base of 20% with an escalating scale of up to 40% dependent on revenue thresholds being reached by sportsbooks.
Instead of using a surcharge to work around high tax rates, Flutter will focus on investing more in FanDuel’s products and find other ways to increase margins. Flutter has dealt with this issue in international markets and will continue working with state regulators on these matters. “We also find that smaller players may have to increase their prices which leads to us capturing more share, which provides an offset for us,” Jackson said. If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on this website, we strongly recommend that you carefully check your local laws before doing so. It is your sole responsibility to understand your local laws and observe them strictly.
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